| dc.description.abstract | Corporate governance refers to the process by which organizations are directed,
controlled and held to account. It encompasses authority, accountability, stewardship,
leadership direction and control exercised in the organization. Corporate governance
practices are more of a way of business life than mere legal compulsion, the ideals
corporate governance practice are transparency, accountability, disclosure and value
creation, this leads to particular practices such as prohibition of insider trading, board
independence etc.
The research was undertaken in order to understand corporate governance practices at
MICL, a private investment company which offers collective investments to members
in diversified Investment portfolios. MICL was formed by members of Mhasibu
Sacco in order to explore investment options by pooling resources together for
investment purposes.
Data for the study was collected from both secondary and primary sources. Secondary
data was obtained from publish annual reports, audited accounts, brochures, investor
briefs, returns submitted to the registrar of companies as well as the company’s
website. Primary data was collected by a face to face interview with the company
secretary of MICL using a key informant checklist, the company secretary was
identified as the key informant of MICL since he custodian of corporate governance
practices of MICL and plays a major role in making sure that MICL complies with
governance and legal requirements.
The research findings showed that corporate governance practices put in place by
MICL are, the independent structure of the board, the composition of the board,
committees formed by the board and corporate reporting. The chairman of the board
and the board of MICL practice corporate governance in their oversight role at MICL.
Further the research also showed factors influencing corporate governance at MICL,
this were identified as internal and external factors. Internal factors are those factors
that are as a result of the companies own doing, the company has influence over and
have been put in place by the company itself, the external factors are those factors
which the company has no control or influence over but affect the company directly.
Corporate governance practices by MICL are not without challenges, the challenges
are occasioned by lack of fully documented corporate governance practices and
policies. However the board of MICL has undertaken it upon itself to make sure that
new board members are oriented on corporate governance and understand their
responsibility to the stakeholders as well as legal requirements. | en |
